The great EV pullback: all the obstacles, cancellations, and delays

Ford is shaking things up as it relates to its EV and software teams. Doug Field, who left Apple five years ago to helm Ford’s multibillion-dollar bet on electric vehicles and software, is stepping down next month. Getting a promotion will be Alan Clarke, the ex-Tesla engineer who now leads Ford’s California-based skunkworks lab. Clarke’s new title will be vice president of advanced development projects, and he will continue to helm the effort to develop Ford’s Universal Electric Vehicle (UEV) Platform.

The shake-up comes less five months after Ford announced a massive $19.5 billion writedown on its EV investment, as well as the discontinuation of several electric models, including the F-150 Lightning pickup truck. The company scrapped plans to build a next-gen electric truck, codenamed T3, and an electric commercial van. Instead, Ford would focus on hybrids as well as its existing lineup of gas-powered trucks and SUVs, as it continues work on its UEV platform, which will eventually underpin a whole family of low-cost EVs, starting with a $30,000 midsize truck in 2027.

Sony and Honda have lost that lovin’ Afeela.

The joint venture announced today that it would be discontinuing the $90,000 Afeela 1 electric sedan, as well as the unnamed Afeela SUV concept, as it adjusts to slower EV demand and policy pullbacks. In a statement, Sony Honda Mobility (SHM) determined there was not a “viable path forward” after Honda recalibrated its EV strategy following steep losses.

These past few weeks have been particularly brutal for the EV industry — and anyone who believes that electric vehicles are the future. Thanks to slowing demand and policy whiplashes, automakers are on an EV murder spree, killing a host of promising new models. The EV graveyard grows bigger by the minute.

And unfortunately, as is often the case, much of the focus seems to be on affordable models that had the potential to attract new customers. Meanwhile, ugly EVs that cost too much and do nothing to move the needle on EV adoption continue to darken our highways.

The steady stream of news about automakers cancelling or discontinuing electric vehicles continues apace. This week it’s Volvo’s small, quirky EX30 and Honda’s solo electric offering in the US, the Prologue. Both are the latest victims of stagnating EV sales in the US thanks to the Trump administration’s decision to eliminate tax incentives.

First, the EX30. The small SUV was the most affordable EV in Volvo’s lineup, even if it took some time before it arrived on our shores. Volvo spokesperson Sophia Durr says that the automaker’s US division has decided to discontinue the EX30 and EX30 Cross Country after the 2026 model year. It will, however, remain on the market globally, including in Mexico and Canada.

Farewell, Honda Zero. We never knew thee.

Honda is cancelling its Zero Series SUV and Saloon, as well as the Acura RSX EVs, citing an “extremely challenging earnings situation.” The Japanese automaker, which unsuccessfully tried to merge with Nissan last year, said it expected to make a net loss of ¥360 billion (~$2.5 billion) to ¥630 billion (~$4.4 billion) in the full year ending this month — which, according to The Financial Times, would be Honda’s first ever annual recorded loss since becoming a public company 50 years ago.

Demand for EVs has gone glacial, and one automaker after another is running aground: General Motors threw $7.6 billion overboard. Ford washed $19.5 billion off its books. Leave it to Stellantis to face the most titanic charge yet, a $26.5 billion bill for its own misplaced bet on EVs.

The Jeep, Dodge, and Chrysler parent company hasn’t said how much of that unfathomable sum is explicitly due to EV losses, as the write-down wiped away about 25 percent of the company’s stock value overnight. Every automaker faces the same cooling EV demand and whipsawing political climate, yet Stellantis appears the most exposed, due in part to longstanding failures to keep up with evolving tech or consumer tastes. Don’t forget quality. An additional $16.7 billion charge for warranty and recall claims, including a recall of 320,000 Jeep 4xe plug-in hybrids for battery-fire risks, adds insult to financial injury.

For decades, America’s auto industry was the envy of the world, driven by mass production, the rise of Detroit’s Big Three automakers, and the iconic stylings of the 1950s and ’60s.

Then, through a series of blunders and missteps, things started to unravel. There was the fuel crisis of the 1970s, which led to an influx of Japanese imports that bested Detroit in fuel savings and reliability. And then there were various global financial collapses throughout the 1990s and early 2000s, and a significant decline in automotive quality as the Big Three continued to push bigger and more expensive vehicles, at the expense of road safety and global competitiveness.

It seems clear at this point to say that Donald Trump does not want to spend a single dime on EV charging. He tried to freeze $5 billion in funding for the National Electric Vehicle Infrastructure (NEVI) program, which was approved as part of the Bipartisan Infrastructure Law. And when a federal judge ordered the government to unfreeze the funds, his administration came up with a new tactic to stall the plan.

EV chargers must now be built in the US, with components that also originate in the US, in order to receive federal funding, the US Department of Transportation said today. Under the proposal, EV chargers would need to boost their US-made parts from 55 percent to 100 percent in order to be eligible for NEVI funding. But industry and environmental groups say the new requirements would essentially stop EV charging build-out in its tracks.

Ford announced a series of changes to its gas- and electric-powered vehicle business aimed at dramatically increasing hybrid vehicle production in the face of slowing EV sales. The automaker also will introduce some new products as part of this plan, including an extended-range EV version of its F-series truck and battery storage systems to meet growing demand from AI data center construction.

The news comes after Ford has weathered years of compounding losses from its struggling EV business. The 122-year-old company once had aspirations to surpass Tesla in battery-electric vehicle sales, but higher material costs and waning demand have since turned that goal into a financial albatross. Over the past two years, the company’s EV division, Ford Model e, has lost over $12 billion, with EV sales down over 60 percent in November alone. Now, Ford says it’s ready to pivot once again.

President Donald Trump announced a new plan that lets carmakers pollute more by making less fuel efficient vehicles. The National Highway Traffic Safety Administration (NHTSA) said today that it’ll roll back fuel economy rules finalized last year by the Biden administration for model year 2022-2031 vehicles.

The Trump administration has eliminated incentives for EV purchases, stymied energy efficiency policies, and gutted pollution regulations in general. The president wants the US to produce more oil and gas, and says that his agenda will boost business for American automakers. Critics contend that Americans will ultimately pay for these measures with higher fuel costs, as well as health risks and climate disasters stemming from tailpipe emissions.

General Motors will end production of its Chevy Brightdrop electric vans at its factory in Ingersoll, Ontario, the company said during its third quarter earnings call Tuesday. The decision was made as slow demand in the electric van market led to hundreds of Brightdrop vehicles piling up in dealer lots in both the US and Canada.

GM CEO Mary Barra said the automaker would assess the CAMI assembly plant for for future opportunities. “This is not a decision we made lightly because of the impact on our employees,” she said in the earnings call. “However the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives has made the business even more challenging.”

Hello, and welcome to Decoder! This is Jake Kastrenakes, executive editor at The Verge. I’m filling in for Nilay for one Thursday episode while he’s settling back into full-time podcast hosting duties.

We’ve got a very good episode for you today. My guest is Verge transportation editor Andy Hawkins, and we’re talking about the federal EV tax credit. The tax credit expired at the end of September, and there are a lot of questions about what happens to the auto industry after its demise.

Have you heard? EV sales are expected to dip significantly in the coming weeks as the federal tax credit expires, and automakers are responding by canceling models, delaying factory plans, and boosting hybrids as a short-term solution. The latest model to get the axe is the Acura ZDX, an electric crossover that had both Honda and GM DNA.

The ZDX had only just made its debut as a 2024 model with 325 miles of EPA rated range and a starting price of $60,000. Like the Honda Prologue, the ZDX was built by General Motors at the automaker’s Spring Hill Assembly plant in Tennessee thanks to a partnership between the two companies. It was supposed to be the big comeback of the ZDX, which was discontinued over a decade ago after poor sales. But as production was gearing up at the factory for the 2026 model, the decision was made to pull the plug.

Stellantis announced that it was discontinuing its Ram 1500 REV electric truck, citing slowing sales of heavy-duty electric trucks.

The name plate, however, will live on. Stellantis said that it was renaming its Range-Extended Electric Vehicle (REEV) Ramcharger pickup to Ram 1500 REV. “This vehicle will set a new benchmark in the half-ton segment, offering exceptional range, towing capability and payload performance,” the company said in its announcement.

Electric vehicles are at a crossroads. Sales are still going up, but many automakers are canceling or delaying new models, worried by recent policy moves that will make EVs more expensive to own.

Every day seems to bring fresh news of a delayed EV or a timeline that’s been pushed back, as automakers struggle to adapt to this newly volatile environment. President Donald Trump’s tariffs aren’t helping much, nor is the recent passage of his $3.4 trillion “big, beautiful” budget bill, which takes a sledgehammer to most EV incentive programs. And Trump’s decision to reverse tougher emissions rules passed under former President Joe Biden is just icing on a pretty unappetizing cake.

Ford’s electric vehicle and software business lost $5.1 billion in 2024, up from $4.7 billion lost in 2024. And the automaker doesn’t anticipate any relief this year, when it predicts it will lose as much as $5.5 billion on its EV business.

Ford reported its fourth quarter and full-year earnings on Wednesday, beating Wall Street expectations, according to CNBC. But the prediction of a tougher year ahead — Ford calls it “headwinds related to market factors” — underscores how far the company still needs to go before it can right-size its EV business. Ford also reported $1.4 billion in “cost improvements” from its Model e division.

Volkswagen ID.7, we hardly knew ye.

The slick, electric sedan first introduced in 2023 was supposed to make its North American debut last year, after selling well in Europe and China, but was delayed indefinitely. Now VW is cancelling the ID.7 for the US and Canada, citing a “challenging environment for EVs.”

Hertz has contacted multiple electric vehicle renters recently with interesting low-cost offers for cars like Teslas, offering them the option to buy their rental EVs instead of returning them. One 2023 Model 3 renter shared on Reddit that they were offered a price of $17,913, which is similar to deals currently showing on the Hertz Car Sales site. However, the rental they were in had about 30,000 miles on it — fewer than other current listings.

Another renter was offered a 2023 Chevy Bolt for $18,442, while a Polestar 2 renter says they saw a $28,500 purchase price. The used cars come with a limited 12-month, 12,000-mile powertrain warranty and a buy-back offer within 7 days.

Ford is canceling its electric three-row SUV and delaying the launch of a new electric pickup truck until 2027. The Expedition-like SUV had already been delayed to 2027; with its cancellation, the company will now pivot to making new gas and hybrid-powered three-row SUVs.

Ford now says it won’t release any new electric vehicles until it can ensure profitability on the models within the first year of launch (beyond vehicles we’ve already heard about, like the European-only Capri and Explorer). Ford will also prioritize a new commercial EV van that will begin production in Ohio in 2026.

Hertz went from scaling back its electric vehicle ambitions to selling off its actual EVs in the span of three months. The rental car agency said in a regulatory filing today that it will sell 20,000 vehicles, or roughly one-third of its global EV fleet, and use that money to buy gas guzzlers.

The decision was made after Hertz reported higher depreciation and damage than expected to its EVs, amounting to $245 million in costs for the company. Also, Hertz apparently couldn’t find enough customers for the EVs in its fleet, so selling a huge chunk of them will “better balance supply against expected demand of EVs,” the company said. The company had previously set a target for 25 percent of its fleet to be electric by the end of 2024.